10 yr Auto loans....yikes!

Of course! There is no way adding $10-20K on top of MSRP and having $50K cars for average income folks wasn't going to lead to this.
Bingo! This is the reason for the 10–year car loans. It's so greedy dealers can keep adding tens of thousands of dollars to the MSRP. Remember we had the stories about the $50K vehicles going for $90K with dealer markup?

If the dealers are the ones to arrange financing through shady lenders as their used-car counterparts do, they get to keep adding big markups.
 
Wait for all the ones who take out a ten year loan then after five or six years decide to trade in that vehicle on another new one and find out they still owe a fair amount of money that will get rolled into the next loan.

The whole thing is a recipe for failure.
 
I've never had longer than whatever the 0.9% rate stretched. Otherwise I can pay cash and be done with it. Not quite the Dave Ramsey plan but since my savings account pays 3.9% I'm ok with 0.9% on the car. My Escape is $229, 36mo., 0.9%.
 
10 years is crazy. If someone drives 15-20k miles per year the car will be shot before they even get it paid off assuming they keep it that long. 6 and 7 year loans already have a lot of people upside down for a big part of the loan term as it is.
 
Even 60 months is too long in many cases. My goal is 36, 48 at most and if I can’t afford that I’m looking at the wrong car or need to wait.

I commonly hear of 72s and even 84s which makes me cringe, I can’t even imagine 120.
60 months is not too long on a new/low miles car.

12,000 miles a year @ 5 years = 60,000 miles. If you buy a new car you are under a bumper to bumper for 36 months and a power train for 5 years. You have oil changes and a set of tires.

There are no added expenses. If you budget correctly what's the 60 month concern?
 
A local dealer is now advertising 10 yr loans. I can't even imagine that. I often get bored of a vehicle in 3-5 years. In that time you would still be under water on your loan. I always thought 5 year loans were bad enough.

I guess it was bound to happen for most people to be able to afford the cost of many vehicles these days.
It’s cradle to grave payments on a vehicle. You’ll own nothing, and be happy.

Insanity, but there will be plenty who sign up for it, in order to appear upscale from where they really are.
 
If most people don't have the cash, they shouldn't be buying anything over $25,000.
Sounds like either you've been listening or talking to my mother. I told my parents that when I started making money a lot of it I would buy a big expensive car. Then I learned the valuable lesson that just because you make more doesn't say it's smart to spend more. I've always tried to put money down and not get in over my head and debt. That's why we have this problem that we do now in the world where everybody is one paycheck away from losing everything. Granted Dave Ramsey isn't right about everything but at least listening to a couple of the shows puts in perspective how reckless and careless people are with finances and trying to keep up with people around them.
 
A local dealer is now advertising 10 yr loans. I can't even imagine that. I often get bored of a vehicle in 3-5 years. In that time you would still be under water on your loan. I always thought 5 year loans were bad enough.

I guess it was bound to happen for most people to be able to afford the cost of many vehicles these days.

Can you post link of this dealer ?
 
That won’t be the case in states with good consumer protection laws. For example, in California EVs will ultimately be required by law to still have 80% of their rated range at 10 years / 150,000 miles.

https://ww2.arb.ca.gov/news/california-moves-accelerate-100-new-zero-emission-vehicle-sales-2035
Yes-and the prediction is California will have a fleet of 60% EVs in the future. SO California sets the clean air example and 13 other states have those standards-so we will see what the EV mandate brings.....
 
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